SOURCE: Developers Diversified Realty

March 27, 2008 09:00 ET

Developers Diversified Realty and Its Joint Ventures Receive Over $500 Million of Additional New Loans and Lender Commitments

CLEVELAND, OH--(Marketwire - March 27, 2008) - Developers Diversified Realty (NYSE: DDR), the nation's leading owner, developer and manager of market-dominant shopping centers, today announced it has received over $500 million of additional new loans and lender commitments.

Developers Diversified received $350 million of net proceeds from a new portfolio of mortgages with a fixed interest rate of 5% interest-only debt service payments, and a five-year maturity. The financing was provided by a life insurance company.

Earlier this week, the Company closed a $71 million construction loan on its Homestead, Florida development project. The interest-only loan, which was provided by three of the Company's commercial banking relationships, has an interest rate of LIBOR plus 120 basis points and has a three-year term, plus two one-year extension options.

Also, Developers Diversified recently extended a $72 million term loan secured by the two assets held in its RVIP VII joint venture, of which the Company's proportionate share ownership is 21%. The loan has an interest rate of LIBOR plus 125 basis points and has a two-year term, plus a one-year extension option. The loan was provided by one of the Company's commercial banking relationships.

Developers Diversified's Sonae Sierra Brazil joint venture, which owns and develops retail real estate in Brazil, closed an R$50 million credit facility in late February. The one-year facility was provided by a Sao Paulo-based commercial bank and has an interest rate of CDI plus 45 basis points, which equated to pricing of approximately 11.5% at closing.

Developers Diversified also has a signed term sheet for a $50 million construction loan on smaller developments at an interest rate of LIBOR plus 110 basis points. The loan is expected to close early in the second quarter.

Scott A. Wolstein, Chairman and Chief Executive Officer of Developers Diversified, commented, "We are pleased to announce these new financings, which underscore our strong balance sheet, banking relationships, and ability to maintain broad access to numerous capital sources despite the challenges of today's market."

William H. Schafer, Executive Vice President and Chief Financial Officer of Developers Diversified, commented, "We are pleased with the liquidity and financial flexibility these new financings provide. We have effectively and proactively addressed substantially all of our consolidated 2008 maturities within the first quarter of the year and are well-positioned to meet our remaining unconsolidated joint venture maturities."

Developers Diversified Realty owns and manages over 740 retail operating and development properties in 45 states, plus Puerto Rico, Brazil, Russia, and Canada, totaling approximately 163 million square feet. The Company is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops and leases shopping centers. Additional information about Developers Diversified Realty is available on the Internet at

Contact Information

  • Contact:
    Michelle M. Dawson
    Vice President of Investor Relations
    Developers Diversified Realty
    Email: Email Contact
    Main: (216) 755-5500